Frequently Asked Questions

What is the American Recovery and Reinvestment Plan (ARRA)?

The American Recovery and Reinvestment Act of 2009 (ARRA) is intended to:

President Obama's recovery plan represents the most ambitious effort to stimulate the economy in our nation's history. The State of Arkansas is currently projected to receive $2.9 billion in one-time additional federal revenues, as administered by the state, split over 27 months.


What does the additional funding mean for Arkansas?

The Governor's Recovery Cabinet has been hard at work identifying the specific dollars that will come our way. Most of this money has already been designated to enhance established programs, meaning we will not have much discretion on how most of the money is spent. Our guiding principle is to advance projects and initiatives that will lay the groundwork for the future growth of Arkansas.

Some of the first work done will involve improving and modernizing our roads, highways, and bridges. These projects will make our State a safer place to live and work; they will create immediate jobs and make us more attractive to new business development. Our infrastructure opportunities reach beyond steel and asphalt. We will explore a rural broadband initiative to further both our educational and economic goals by bringing high-speed Internet access to people in the furthermost reaches of Arkansas. Modernizing public school facilities and retrofitting public buildings for greater energy efficiency serves our fiscal, educational, and environmental bottom lines, simultaneously. Each of these projects - and many more like them - will improve Arkansas in the long term, while helping to save the jobs of companies already needing support and creating much-needed new ones to keep our economy steady.


How will Arkansas spend the federal economic stimulus funds?

The law contains several mechanisms to ensure funds are granted and expensed rapidly in order to provide the most immediate impact possible for the economy. The Act's language states: "recipients shall give preference to activities that can be started and completed expeditiously," including the goal of committing 50% of the funds within 120 days. Overall, there are 2 types of grants, Formula and Competitive. Formula (entitlement) grants are to be made available within 30 days of passage of the Act, while Competitive (applicant) grants shall be awarded within 90 days. These grants contain "Use it or Lose it" clauses which will require recipients to enter into binding contracts within one year of enactment of the Act for 50% of the funds, and within two years for the remainder of the funds. In general, funds appropriated by the Act and obligated within the first 120 days of each year shall remain available for expenditure until September 30th of the following year. Agencies will be required to report detailed expense records for publication on the website, Recovery.gov.


How will Arkansas decide which projects and programs will receive economic stimulus funds?

The American Recovery and Reinvestment Act sets out specific criteria that projects must meet to be eligible to receive funding as well as how and when the federal government will distribute these funds. The funding for many projects will be based on existing formulas, including Medicaid, unemployment insurance and funding for K-12 schools.


What accountability and transparency steps will be put in place?

The American Recovery and Reinvestment Act includes unprecedented guidelines for accountability and transparency. Taxpayers will be able to track the funds both at a state and national level and will be able to see to whom the funds were awarded and the amount of the awards. In addition, both state and federal governments will have significant monitoring, reporting and risk management responsibilities to protect against fraud, mismanagement and waste.


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